Base Model Initial Investment -$90,000 MARR = Annual Benefit $20,000 0.14 Project Life Suggestion: This problem is simple enough to calculate NPV by hand to double check your formula. NPV = ($21,338)| IRR = 3.6%
Base Model Initial Investment -$90,000 MARR = Annual Benefit $20,000 0.14 Project Life Suggestion: This problem is simple enough to calculate NPV by hand to double check your formula. NPV = ($21,338)| IRR = 3.6%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please solve table and show all formulas
![29
3. Create a Two-Way Data Table to Explore Sensitivity of NPV to Project Life and Annual Benefit
30
31
Annual Benefit
32
($21,338) $10,000 $15,000 $20,000 $25,000 $30,000
33
4
34
35
36
7
37
8
38
9
39
10
40
11
41
12
42
43
44
Additional worksheets follow.
45
46
47
Project Life](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e9f2beb-91d4-4a43-a4ac-2bdc22725bbc%2Fbfc0711a-5874-4031-a9a6-f438ebc1fb63%2Fb15q2gq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:29
3. Create a Two-Way Data Table to Explore Sensitivity of NPV to Project Life and Annual Benefit
30
31
Annual Benefit
32
($21,338) $10,000 $15,000 $20,000 $25,000 $30,000
33
4
34
35
36
7
37
8
38
9
39
10
40
11
41
12
42
43
44
Additional worksheets follow.
45
46
47
Project Life
![5
Base Model
6
Initial Investment
-$90,000
7
MARR =
Annual Benefit
$20,000
8
0.14
Project Life
5
($21,338)
3.6%
Suggestion: This problem is simple enough to calculate
NPV by hand to double check your formula.
NPV =
10
IRR =
11](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e9f2beb-91d4-4a43-a4ac-2bdc22725bbc%2Fbfc0711a-5874-4031-a9a6-f438ebc1fb63%2Frmlnwqs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5
Base Model
6
Initial Investment
-$90,000
7
MARR =
Annual Benefit
$20,000
8
0.14
Project Life
5
($21,338)
3.6%
Suggestion: This problem is simple enough to calculate
NPV by hand to double check your formula.
NPV =
10
IRR =
11
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